Stock Market Investors » Glossary of Stock Terms » What is a Basis Point?

What is a Basis Point?

Generally the value of a basis point is equal to one hundredth of a percent. This means that one percent is equal to 100 basis points. You often hear such statements in the media that the Fed has increased a particular rate by a certain number of basis points.

1 basis point = 1/100 of 1%

1% = 100 basis points

To be a successful investor you need two main things - the knowledge and the right trading platform.

For a trading platform we recommend you try Zecco.
Zecco offers free stock trades, no account minimum, real time quotes, trading community, and is also insured and protected against loss by SIPC. Opening a Zecco account to benefit from $0 Stock/ETF trading is a smart idea. Free stock trades allow you to preserve more of your wealth and save money, which you can invest instead of paying brokerage commissions.

When looking to save money on trades in order to have more to invest, you should definitely check the promotion OptionsHouse is currently running. Open a new account and get 100 free trades.

For knowledge we can highly recommend you subscribe to the The Wall Street Journal.

Article Tools

Rate this article : Low

Currently 2.9/5 Stars
1
2
3
4
5

High

Bookmark this page :

Email to a friend | Print this page | Link to this article | Digg this